Genesco Turns Over Documents
Nashville, Tenn., Genesco Inc. has turned over more than 1.5 million pages of internal documents in its lawsuit to force The Finish Line Inc. to complete a buyout.
The $1.5 billion buyout, agreed to in June, had been scheduled to close last month, but Indianapolis-based Finish Line and investment bank UBS AG stalled on the deal because of concerns over Genesco’s financial performance after the $54.50-per-share buyout deal was announced.
Finish Line had complained that Genesco was denying access to key internal records and company officers. But Finish Line and UBS said in a court filing Thursday that they have had few problems with voluntary handover of information from Genesco since a Nashville judge earlier this month scheduled the case to go to trial the week of Dec. 10.
Genesco has also agreed to allow four of its executives to be interviewed by the defendants’ lawyers on Oct. 29, according to the filing.
Genesco’s lawsuit accuses UBS and Finish Line of developing “buyer’s remorse” following an upheaval in the credit market.
UBS and Finish Line, meanwhile, say they want to determine whether Genesco’s worse-than-expected second quarter was a temporary setback or an indicator of a long-term problem—known as a “material adverse effect”—that would allow it to get out of the deal.
FTC, Whole Foods battle rages on
The Federal Trade Commission refuses to back down from its fight against Whole Foods Market. On Monday, the FTC filed a motion with the U.S. Court of Appeals for the District of Columbia Circuit, opposing Whole Foods motion to dismiss its case before the Appeals Court as moot.
In the motion, The FTC claimed that Whole Foods merger with Wild Oats could still be found to be in violation of antitrust laws. Adding that Whole Foods itself admitted that though the merger was consummated on paper, does not mean the combining of the two companies is finished.
The FTC is seeking a prompt briefing schedule in order to move the case forward quickly.
In August, the merger between Whole Foods and Wild Oats closed, and Whole Foods purchased 84.1% of Wild Oats’ outstanding common stock in a cash tender offer of $18.50 per share.
Sam’s Club brings the holiday bling
BENTONVILLE, Ark. Sam’s Club today announced the launch of a new jewelry collection valued at more than $2 million. The collection is available online at samsclub.com with an assortment of complementary pieces also in Clubs nationwide, the company reported.
During the holiday season, Sam’s Club is offering exclusively two so-called “Important Jewels,” an industry term for diamonds and other high-end jewelry, rarely found outside jewel salons and auction houses. The pieces include an asscher cut diamond ring, valued at $347,368, and square emerald cut drop earrings, priced at $210,256.
The items are currently available for preview online, Sam’s Club reported, and will be available for Sam’s Club members to purchase on Nov. 8.
“Our team and suppliers tracked down the season’s must-have diamonds, gemstones and pearls,” says Tina Corley, senior diamond buyer for Sam’s Club. “We’ve taken the best looks from the runway to the red carpet and turned them into real possibilities at Sam’s Club prices for our members.” Corley adds, “More and more people are discovering the quality and value of Sam’s Club jewelry regardless of their budget. It’s not uncommon to save approximately 30% to 50% on general merchandise at Sam’s Club, and that includes jewelry.”